Today, Treasury Secretary Steven Mnuchin announced to the press that the federal government will audit any business that takes more than $2 million from the government’s coronavirus loan program. The program was intended to help support small businesses during the pandemic. It offers loan forgiveness provided businesses spend the funds for specific purposes, like payroll, rent, and utilities. However, businesses should be careful that they are in compliance with all of the program’s requirements, or risk being denied loan forgiveness—or worse open themselves up to costly government investigations.
This announcement is an early indication of the government’s intention to initiate wide ranging compliance actions to ensure that funds are used as Congress intended. With over $2 trillion in the till, the government is sure to keep an eye on its investment.
While initial enforcement actions will certainly focus on larger loans and those who are overtly taking advantage of the program, enforcement efforts are sure to stretch to more and more business in the future. Protecting your business means engaging qualified professionals now to ensure your compliance.
If you are facing a government investigation or are concerned about CARES Act compliance, contact the attorneys at Miller Law Group today for a free consultation. Our attorneys can help guide you through these trying times.